Nextdoor Holdings, Inc. (NYSE:KIND) Q3 2023 Earnings Call Transcript

Those are something that are done in real life. And again, a core component of Nextdoor is often the online to offline motion of how do you build great community in real life. So they are effective in terms of building out that brand, building out that brand awareness, those campaigns are also very effective in selling to other equally large spenders in for example the tech and telco vertical, but even across other verticals who might want to do something that just feels very unique and differentiated, very much about community, localism, and so on. And we saw a lot of this at Ad Week in New York just a few weeks back where the sales team was there in full force. In terms of the second part of your question, which is the progress on B2B initiatives that is the other way that we can drive growth look.

So, our content when it’s taken out onto other people’s platform, like for example, Bing from Microsoft, that could be a really great way to both provide a partner with really unique differentiated local data but then when someone clicks on that they come back into Nextdoor either as a WAU that’s returning or potentially as a net new neighbor that’s going to sign up in order to find out more. With initiatives like Weather.com, Axios, BBC, those are examples where we can take information coming from others. And it allows us to surface to neighbors something that feels very of the moment, Weather is a great example. It’s something that’s hyperlocal and particularly in emergency situations, weather alerts are really what a neighborhood cares about.

So, it’s a really good two-way street with a partner like that. So we’re continuing to build out our API, so that we can do that. We just launched – soft launched our developer API website out there into the world, so that others can come and be part of that same growth strategy. So we feel good about it, very early days. But it’s yet, the third lever of how we grow. So invite, brand awareness, content sharing, and then finally paid is a much smaller piece today.

Brian Fitzgerald: Awesome. I appreciate it. Sarah thanks so much.

Sarah Friar: Thank you.

Operator: Thank you, Brian. Our next question comes from Youssef Squali of Truist. Youssef, your line is now open. Please go ahead.

Robert Zeller: Thank you. This is Robert Zeller on for Youssef. A few questions. On the organic user growth, I’m just curious where that occurred as you enter international. And on the 4Q revenue guide, what were some of the things that you expect is play out that didn’t materialize? And then, on the session-depth reaching all-time highs, I’m just curious what drove this you know, if it was – I think last quarter, you talked about how you are expanding the vicinity of neighbors that content reaches. And I think you also previously called out notifications as a driver of increasing engagement and user growth. So, I’m just curious with the new strategy of what you’re doing around notifications if that might impact engagement of the user growth at all. Thanks.

Sarah Friar: Sure. Great. Thank you. Lots of great questions there. I’ll quickly take their organic user growth. I’ll throw it over to Matt to talk about Q4, what did and didn’t materialize. And then I can finish out on session depth. So, on the organic user growth, you’re right to differentiate between the two, both international and the U.S. grew in the quarter and then the period year-over-year. However, the big push on digital invites has really had an impact more in the U.S. right now. That’s good, because it’s a market that is most mature in terms of monetization. It’s also true that some of the other areas that I was outlining previously, things like our partnership strategy today have been bigger in the U.S., aside from someone like the BBC.